Reference: Ref 7-2 (Figure: Demand Curve Sections) Refer to the Figure

question 62

Multiple Choice

Reference: Ref 7-2 (Figure: Demand Curve Sections) Refer to the figure. The section of the demand curve labeled A represents the:

• A) value of the good in its next highest use.
• B) satisfied wants.
• C) unsatisfied wants.
• D) All of the answers are correct.

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Definitions:

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Marginal Product

The additional output resulting from the use of one more unit of a variable input, holding other inputs constant.

Optimal Employment

The level of employment where the productivity is maximized in relation to the number of employed workers.

Marginal Product

The extra output that is produced by using one more unit of a factor of production, like labor or capital, holding other factors constant.